Five Simple Steps to Becoming a Successful Real Estate Investor

{{{5|Five}}} {{{Simple|Easy}}} Steps to Becoming a Successful Real Estate Investor

Many people love to be mystified. The arts mystify them, so they ooh and ahh and congratulate the artist on his or her “great gift.” Science mystifies them, so they don't even wonder about what it is that researchers are doing. Investment in real estate mystifies them, so they assume it's just a lottery and that certain people either are extremely lucky, or that they were born with a natural talent .

They are unwilling to accept that succeeding in all three disciplines is simply contingent on formulating a series of steps and following through on your plan. Anyone who reads the Rich Dad, Poor Dad series by Robert Kiyosaki know that, in the real estate investing game, there are 5 key steps necessary to succeed. Investor must:

1.Understand the language of real estate investment. That means to have a working knowledge of basic {finance and accounting and know how to read financial statements. These skills give you the ability to determine whether a property is an asset and a drain. It is also important to know the basics of tax code related to real estate so that you don't make expensive mistakes, but also to know where the best tax deductions for real estate investors are. Understanding the fundamentals of these subjects will give the investor the power to communicate effectively with his accountant and lawyers.

2.Keep himself surrounded by experts. This means networking and studying the people who may end up on the real estate investing team of experts who will help him find and evaluate properties. He should get to know the real estate investment community in the city in which he is looking to invest his money, and thereby get to know the city.

3.Keep a watchful on the real estate markets. The investor should read up on various cities and see what the experts have to say in their regard, but he should also take a look at them himself. He should do this double-time in his own city, if that is the he is planning on putting his investment funds there. He should get to know economic factors and learn which areas are good news, and which are bad news. He should study what the rents in his marker and deduce whether or not a piece of property in that area would assist him in reaching his goals. The investor should personally visit and walk through as many properties as possible with his team of experts, even if he is not actually ready to buy. 4.The investor should know the right and wrong way to negotiate . Many people simply have misconceptions regarding negotiating. They believe the objective of every negotiation is reach a closing by any means necessary, and to bully the seller into ceding to his demands. If the buyer can work the relevant numbers to his advantage, and the seller will accommodate his terms of sale, that is the point at which the buyer ought to proceed with the purchase of the property. If not, the {purchaser should refrain from closing on the deal. According to Ken McElroy, writer of “The ABCs of Real Estate Investing,” the investor should go into every negotiation assuming he will walk away in the end.

5. Nurture your properties. This is exactly what it sounds like. Make the necessary renovations and repairs on the piece of property and fill empty units. Ensure that renters' wants and needs are addressed.

This description represents a simplification of the long road to real estate investment success, but these five simple steps show that anyone can learn how to succeed in the real estate business. There is nothing magical or mysterious about it.

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com